Fundraising Fox

Dropwater

San Luis Obispo, US Β· 3 known investors

Drop Water builds smart refill stations that dispense fresh, customizable beverages to reduce single-use plastic waste. Its Drop Refill machines are deployed in offices, gyms, airports, and private clubs across the United States.

Also known as Drop Water Β· Dropwater

Founders & leadership

SE
Scott EFounder
SE
Scott EdwardsCEO

Investors Β· 3

Also in the syndicate Β· 1

Culligan Internationallead

Company profile

researched Aug 2026

Drop Water (Dropwater) develops self-service hydration kiosks that filter and dispense water on site, with options for chilled, ambient, sparkling and hot water plus flavors and functional "boosts." Its current product, the Drop Refill, is a free-standing station on casters measuring 68 inches high, 18 inches wide and 19 inches deep, occupying about 2.5 square feet. It requires only power, an incoming 3/8-inch water connection and wireless internet, with an optional drain line. Each unit holds up to ten 472-serving flavor boxes and up to 20 lbs of CO2, and can be configured with or without hot water (165F-190F), with a drip tray or drain line, and as a free amenity or a paid, per-serving dispenser [0][1].

The machines are internet-connected and paired with a client dashboard for inventory levels and order data, plus a consumables ordering platform for restocking. Servicing and restocking require no tools, and the unit runs a self-sterilizing cycle. When fitted with a payment terminal, the station accepts contactless (NFC) cards, Apple Pay, Google Pay, EMV chip cards and magstripe; Stripe is the recommended all-in-one card reader, processing and payout solution, with operators keeping the revenue from drinks sold [0][1].

Flavor offerings are proprietary to Drop Water and cannot be substituted by customers. The line includes options such as Mint Mojito, Pomegranate Acai, Peach Tea, Blackberry, Passion Orange Guava, Orange + Vitamin C, Strawberry Kiwi, Raspberry Lychee, Yuzu Ginger, unsweetened Lime, Grapefruit, Triple Berry and Peach Mango, Lemonade, Tropical Energy and Tea + Lemonade, alongside boosts for hydration electrolytes, Cognizin brain boost, a vitamin blend and caffeine. Flavors are sweetened with monkfruit, use potassium sorbate as a preservative, and several caffeinated options are offered [0][2]. An earlier product generation bottled and sealed filtered water on demand at kiosks called Drop Stations, using compostable or recyclable packaging rather than transporting bottled water [5][6]. A second product line, the Drop Duo, was introduced alongside the company's Series A [4].

Founding story

The company grew out of CEO Scott Edwards's senior project at Cal Poly San Luis Obispo, where he studied industrial technology and packaging; he had previously led the robotics team at Pinewood School. The original concept was a machine dispensing reusable bottles that consumers could return to any station, but consumer resistance to shared bottles led the team to switch to compostable bottles. As of 2018 four Cal Poly San Luis Obispo graduates were working on the product from a Menlo Park garage [5].

Business model

Drop Water sells or leases hydration stations to commercial site operators and supplies the recurring flavor and boost consumables and CO2 through its own ordering platform. Pricing is quoted per deployment and depends on unit count, configuration and whether the machine is leased or purchased; financing options are offered. Sites can run the machine as a free employee or guest amenity or charge per serving, setting their own price and keeping the revenue [0][1].

Hardware sale or lease of Drop Refill stations plus repeat sales of consumables (flavor and boost boxes, CO2) ordered via the company's consumables platform [0][1].

Traction

Testimonials on the company site reference deployments at offices, a commercial club space, ACI Jet SLO and San Jose Airport, where a property manager stated SJC was placing four new machines throughout the terminal in 2024; one office reported over 160 gallons dispensed in the first two weeks [1][2]. In 2018 the company said it would install two kiosks at San Jose Airport and targeted 100 installations at airports and college campuses within a year [5].

Latest developments

In June 2025 the company announced the launch of a crowdfunding campaign on StartEngine [4]. Its site markets the Drop Refill configurator with hot-water, paid-vending and drain-line options and Stripe-based payments [0][1].

β–ΈFull profile β€” market position, technology, go-to-market, geography, history, risks & controversies

Market position

Positions its refill stations as a replacement for single-use plastic bottled water and for existing flavored-water dispensing vendors in commercial facilities; Draper Associates classifies the company under sustainable beverage technology, compostable packaging and eco-friendly hydration systems [1][6].

Eliminates transporting bottled water by filtering and preparing drinks at the point of consumption; combines still, chilled, sparkling and optional hot water with up to ten selectable flavors and boosts in a 2.5-square-foot plug-and-play footprint, with remote inventory telemetry and optional per-serving payment collection retained by the site operator [0][1][5].

Technology

Internet-connected dispensing kiosks combining on-site water filtration, chilling, carbonation and optional instant hot water with dosed flavor and boost concentrates, a self-sterilizing cycle, tool-free flavor box connections, remote inventory and order-data monitoring via a client dashboard, and integrated card/NFC payment acceptance [0][1]. Earlier kiosks filtered and bottled drinks on demand into compostable or recyclable packaging at the point of sale [5][6].

Go-to-market

Direct sales through a web-based configurator and quote-request form, in which prospects specify machine configuration and install location; the company also supports existing partners with a consumables reordering portal and a client dashboard, and cites installations obtained through property managers and hospitality operators [0][1][3].

Commercial and institutional venues, including offices and workspaces, private clubs, hotels and hospitality, gyms and fitness centers, sports arenas and airports [1][2][5].

Geography

United States; the company was based in a Menlo Park, California garage in 2018 and is listed by Draper Associates as located in San Luis Obispo, with customer references including San Jose Airport and ACI Jet in San Luis Obispo [1][5][6].

History

Dropwater was operating out of a Menlo Park garage in 2018 with kiosks branded Drop Stations that filled and sealed compostable or recyclable bottles on site; it had taken seed funding from Tim Draper, received a $25,000 Pipeline H2O award in July 2018, and was preparing a Series A [5]. It later closed a $5.5 million Series A led by Culligan International and launched the Drop Duo [4]. An interview with CEO Scott Edwards on sustainable packaging was published in April 2023, and in June 2025 the company announced a crowdfunding campaign on StartEngine [4]. Its current commercial product is the Drop Refill station [0][1].

Risks & controversies

Flavors are proprietary and customers cannot supply their own; installations require power, plumbing and wireless connectivity, and some configurations need a drain connection to a p-trap within 50 feet. Pricing is not published and is quoted per deployment [0][1].

Compiled by commissioned research from 7 cited public sources β€” announcements, filings, and press listed under research sources below.

Key figures

latest reported
CO2 capacity per stationJan 202520 lbs
Drop Refill footprintJan 20252.5 square feet
Drop Refill station dimensionsJan 202568in H x 18in W x 19in D, free-standing on casters
Flavor/boost capacity per stationJan 202510 flavor boxes (472 servings each)
Founding team size in Menlo Park garageJul 20184 people
Hot water dispensing rangeJan 2025165F-190F
Water dispensed at a customer office in first two weeksJan 2025160 gallons

Company-reported or press-reported figures, each dated to when it was claimed β€” not independently audited.

Timeline Β· 7

launches, deals, and filings
Jun 2025
Crowdfunding campaign launched on StartEngine

Drop Water announced the launch of a crowdfunding campaign on the StartEngine platform.

source β†—

Jan 2024
Additional machines placed at San Jose Airport

A San Jose Airport property manager stated that SJC was placing four new Drop Water machines throughout the terminal in 2024.

source β†—

Jan 2023
$5.5M Series A led by Culligan International

Drop Water closed a $5.5 million Series A funding round led by Culligan International.

$5.5M source β†—

Jan 2023
Launch of the Drop Duo

Drop Water unveiled the Drop Duo hydration product alongside the close of its Series A round.

source β†—

Jul 2018
Received $25,000 Pipeline H2O award

Dropwater received a $25,000 award from Pipeline H2O in July 2018 while preparing for a Series A round.

$25K source β†—

Jan 2018
Initial San Jose Airport kiosk installation planned

The company said it would install two kiosks at San Jose Airport and set a goal of 100 installations at airports and college campuses within a year.

source β†—

Jan 2018
Seed funding from Tim Draper

The company reported receiving seed funding from investor Tim Draper; Draper Associates lists Drop Water as a current portfolio company.

source β†—

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

β–ΈResearch sources Β· 7

primary sources listed

7 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does Dropwater do?
Drop Water makes connected refill stations that dispense filtered still, chilled, sparkling and flavored water for commercial sites.
Who founded Dropwater?
Dropwater was founded by Scott E.
Who are Dropwater's investors?
Dropwater's investors include Cardinia Ventures, Kern Venture Group.
Where is Dropwater headquartered?
Dropwater is headquartered in San Luis Obispo, US.